How Islamic finance missed heavenly chance

Islamic Finance magazine:Amid the confusion and consternation of the global financial crisis, Islamic banking had a gilt-edged chance to step into the breach.
It is hard to remember amid screaming headlines proclaiming record bonuses for the bankers of Wall Street and the City.

But just over a year ago, the conventional financial system was on its knees.

"When Western banking collapsed, one sector should have escaped unscathed: Islamic banking," says Mohammad Saeed Rahman, chairman of a US-based think tank, the Institute for Halal Investing.

But from Mecca to Malaysia, the world's Islamic bankers were paralysed and failed to take advantage of the opportunity.

And now Dubai's debt problems have soured the sector's image, with property developer Nakheel asking for the trading of some of its Islamic bonds to be suspended.

So what happened?[Read More]